The Federal Government has estimated that the Compressed Natural Gas (CNG) will cost N97 per litre, as it had promised to provide alternatives to the Premium Motor Spirit (PMS), otherwise known as petrol, for poor Nigerians.
According to a report from The Nation, the disclosure was made by the Minister of State for Petroleum, Timipre Sylva, while carrying out an inspection of the Autogas Dispensing Station and conversion exercise in Abuja.
The criticism and protest that greeted the sharp increase in the pump price of petroleum products in September prompted the Federal Government to announce its plans for calibrating vehicles and power generating plants for gas fueling free of charge in October.
This is also in line with the promise of intensifying efforts to provide Nigerians with Autogas to reduce the impact of rising cost of petrol, and conforms with President Muhammadu Buhari’s commitment to introducing gas as a better fuel for Nigerians.
The Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Abdulkadir Saidu in a statement, said the Autogas Dispensing Station and Conversion Inspection Exercise took place at the NNPC Autogas Dispensing facility Jahi and Autolady Garage in Abuja, where some government official vehicles were being converted from petrol use.
The Minister expressed his satisfaction with the conversion process so far and charged conversion centers to make vehicle and user safety a priority during the process. He added that his vehicles and some in the President’s fleet would soon be converted as well.
Mr. Abdulkadir Saidu stated that the government would ensure that autogas would soon be made available to people all over the country.
He said, “Nigerians can rest assured of the Government’s undying commitment to providing a cheaper and cleaner alternative to PMS, as prices have been on an upward climb in recent months following the deregulation of the downstream sector.
“Aside from the fact that autogas is cheaper, we are also concerned about making the conversion of cars affordable so that Nigerians can indeed reap the advantage of this new policy.”
The PPPRA boss, after the inspections, also disclosed that some filling stations across the country were already keying in to the plan by adding Autogas dispensers to their stations.
He urged Nigerians to embrace Autogas, as gas-powered vehicles are cheaper and more environmentally friendly than any other fuel available on the market today.
He also noted that the majority of vehicles built in the last two decades are well suited to conversion for dual-fuel applications, therefore it is safe for all Nigerians willing to convert their vehicles.
Nigeria needs about 100,000MW of power – Elumelu
Tony Elumelu has disclosed that Nigeria needs about 100,000MW to power the economy.
Nigeria needs to increase its electricity generation from about 5,000 to 100,000 Megawatts to power the nation’s economy.
This was disclosed by the Chairman of Transcorp Group, Tony Elumelu in an interview on Arise TV on Wednesday. According to him, the nation needs to stabilize its transmission lines, provide adequate gas supply and strengthen her payment plans.
He said, “Nigeria needs about 100,000 MW to power the economy. It also needs to stabilize the transmission lines and ensure access to gas supply.
For Nigerians to heave a sigh of relief in the sector, it needs to boost generation, fix gas supply to GenCos, boost payment of distribution and ensure power generated are taken by DisCos. Here I must commend the CBN Governor because he has helped to maintain peace in the space.
Before the end of 2020, NBET used to pay about 20% but it now pays about 50%. It is still a critical sector that still needs investment and stakeholders must ensure it works.”
NERC approves N215 billion for Ikeja and Eko DisCo upgrade
The NERC said the approved upgrades would improve the distribution of power supply by the DisCos.
The Nigerian Electricity Regulatory Commission (NERC) announced it has approved the sum of N121.92 billion for Ikeja Electric Plc infrastructure upgrade for the next 5 years and also N93.76 billion for Eko Electricity Distribution Company (EKEDC) infrastructure upgrades within the same period.
The NERC disclosed this in its Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application which was released on Monday and signed by NERC’s Chairman, Mr. Sanusi Garba, and Mr. Dafe Akpeneye, Commissioner, Legal, Licensing and Compliance.
PIP and Capital Expenditure (CAPEX) program is expected to take effect from July 1, 2021 to June 30, 2026.
The NERC said the approved upgrades would improve the distribution of power supply by the DisCos citing public hearing scrutiny in its PIP and Extraordinary tariff review applications in a bid to ensure accountability.
The approved CAPEX for Ikeja Electric Plc would be N24.38 billion annually from 2021 to 2026, while for Eko Electricity, it would be N18.75 billion for the same period, totaling N93.76 billion.
The upgrades would be in the areas of existing network capacity, technological enhancements to reduce outages, and the acquisition of tools to improve network performance.
What you should know
Recall Nairametrics reported that a new Extraordinary Tariff Review Applications, 5-year Performance Improvement Plan (PIP) and Capital Expenditure, CAPEX, for the Electricity Distribution Companies (DisCos) was approved by the NERC.
For the Abuja Electricity Distribution Company, AEDC, the company proposed to undertake numerous interventions to improve service delivery to customers. Over the next five years, the proposed interventions will allow AEDC to achieve substantial improvement in service delivery and increase the number of new customers from the current level of 1,214,259 to 3,450,695.
Nairametrics | Company Earnings
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